Realty Z Estate’s Bengaluru Affordability Crisis: Mid-End Housing Plummets 29% in 2024!

Team Opulnz Abode: 13-03-2025:15:45: Read time – 1.5 mins

Bengaluru’s real estate market is hitting a wall for budget-conscious homebuyers! Realty Z Estate’s latest report reveals a jaw-dropping 29% drop in mid-end housing launches in 2024, leaving buyers scrambling for affordable properties. Here’s why this affordability crisis is shaking up the property scene:

Mid-End Homes Vanish: What’s Happening?

The market for mid-end residences—properties priced between ₹40 lakh and ₹80 lakh—shrank fast! Realty Z Estate data shows launches fell from 15,179 units in 2023 (29% of total housing) to 14,876 in 2024 (just 22%). New homebuyers hunting for apartments in the ₹90 lakh-1 crore range are out of luck, forced to eye suburban locations or the resale market. It’s a real estate squeeze hitting the middle class hard!

Premium New Launch on Hosa Road Sarjapura

Luxury Takes Over: Developers Chase Big Bucks!

While mid-end homes fade, luxury properties are booming! Realty Z Estate notes that premium residences above ₹1.5 crore jumped from 29% of launches in 2023 (15,071 units) to 34% in 2024 (23,073 units). Rising land costs, construction hikes, and fat profit margins steer developers toward affluent buyers craving luxury amenities and sprawling apartments. The housing market is tilting upscale, leaving budget buyers in the dust!

Demand vs. Supply: A Middle-Class Mismatch!

Here’s the kicker—38-40% of Bengaluru’s homebuyers still crave mid-end properties, says Himanshu, CEO of Realty Z Estate, in an HT.com chat. But with supply drying up, the market isn’t delivering. Meanwhile, luxury resale units doubled in 2024, fueled by investors cashing in on better ROI and premium pricing. Gated communities are outpacing standalone buildings in value growth—proof that secure, amenity-rich developments are the new real estate gold!

Realty Z Estate’s Hotspot Watch: North Bengaluru Steals the Show!

Where’s the real estate action? North Bengaluru’s leading the charge—here’s why:

North Bengaluru: The Fastest-Growing Hub!

Realty Z Estate crowns North Bengaluru the market’s rising star! Areas like Devanahalli, Yelahanka, KIADB Aerospace Park, Hennur Road, and Thanisandra saw new housing launches soar to 33% of the total in 2024, up from 23% in 2023. Airport proximity, tech parks, and industrial development make it a location magnet for buyers and investors hunting premium homes and investment wins!

East Bengaluru: Steady as She Goes!

Don’t sleep in East Bengaluru! This IT and startup community powerhouse keeps pumping out properties with steady launches. Realty Z Estate highlights its edge—major tech parks, top IT firms, and a buzzing commercial vibe ensure consistent real estate supply. It’s a location that blends luxury and stability for homebuyers!

New Launch Starting from 55 Lacs Sarjapura Road

Why Bengaluru’s Real Estate Market Is Splitting in Two!

The affordability crisis is reshaping Bengaluru’s housing landscape—here’s the breakdown:

Luxury Rules, Mid-End Drools!

Developers are all-in on luxury developments, chasing high-margin properties over budget-friendly homes. Realty Z Estate’s report shows the shift: premium residences dominate new launches, fuelled by buyers who want spacious apartments and top-notch amenities. Rising costs are pushing the market upscale, sidelining middle-class buyers!

Suburbs or Resale: The Only Options Left?

With mid-end housing scarce, homebuyers are pivoting! Realty Z Estate says suburban locations and resale properties are the fallback for those priced out of central Bengaluru. It’s a real estate survival move as affordability shrinks and investment focus shifts to luxury townships and gated communities!

Gated Communities Win Big!

Realty Z Estate spots a trend—properties in gated communities are appreciating faster than standalone buildings. Secure, integrated living with premium amenities drives demand, making these developments the market’s darlings for buyers and investors alike!

Realty Z Estate: Your Global Real Estate Navigator!

Caught in Bengaluru’s affordability crisis or eyeing a luxury investment? Realty Z Estate, the world’s most innovative, research-driven real estate consultancy, has you covered! Their global experts dominate locations from Bengaluru to Dubai, turning housing markets like this into your next home, apartment, or property jackpot. This powerhouse brand unlocks real estate success worldwide—reach out today!